Economy likely to grow by 5.5-6% in 2012-13: Rajan
India was growing at a rate of more than 9 per cent.
Rajan said the government would do its best to stick to the 5.3 per cent fiscal deficit target for the current fiscal.
"We have to be careful about everything we spend on. Thats how we are going to get back on fiscal track, being careful," he added.
On the recent decline in WPI inflation, Rajan said, "As we go into the next year, some quietening of inflation is to be expected. Certainly that core inflation came down quite strongly in the latest numbers is a reason for confidence".
The WPI inflation fell to a 10 month low of 7.24 per cent in November, from 7.45 per cent in October.
To a query on whether increasing tax would help curb gold imports, Rajan said, "the better approach for us is to make financial instruments more attractive.
"We need to see the process of gold import, if people are holding it in gold bars, then we have to see is if we can make the financial instruments more attractive".
The import of gold had declined to 398 tonnes in April- October of the current fiscal, from 589 tonnes in the corresponding period last year. In value terms, it has declined from Rs 1.40 lakh crore to Rs 1.15 lakh crore.
Be the first to comment.
